Category: Corporate Earnings

For reference purposes, below are two charts depicting net profit margins for the S&P500.  Both charts are from the FactSet Earnings Insight report (pdf) dated July 12, 2013.

The first chart depicts S&P500 net margins (TTM) since mid-2003, as depicted:

Trailing 12M Net Margin: 10 Years

The second chart depicts S&P500 quarterly net margins from Q4 2010 through Q1 2013, and projected net margins from Q2 2013, as depicted:

Quarterly Net Margins (Bottom-Up EPS / Bottom-Up SPS)

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Today the Wall Street Journal published an article regarding the outlook for Q2 2013 earnings, titled “Earnings in Spotlight as Fed Jolt Fades.”  The article contains various statistics and commentary regarding projected earnings and revenue.

Here are two notable excerpts:

“We’d be very surprised if there was a huge pop in earnings,” says Wayne Lin, who helps oversee $9 billion as chief strategist at Legg Mason LM -0.69% Global Asset Allocation. “If you don’t have top-line growth and your margins are at historically high levels, where are you going to get your earnings from?”

also:

After years of boosting earnings through cost-cutting, many companies need revenue growth in order to keep the bottom line growing, analysts say. But that is a daunting challenge because of still-sluggish economic growth. Revenue at companies in the S&P 500 is expected to climb just 1% in the second quarter compared with a year earlier, according to FactSet.

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The FactSet Earnings Insight report of June 21, 2013 had various notable commentary with regard to projected earnings growth and profitability trends for the S&P500:

from page 3:

No Change in Earnings Growth Rate This Week, But Cut by Almost 3/4 since March 31

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from page 4:

Estimated Earnings Growth (1.1%), but Falls to -2.2% Excluding the Financials Sector

For reference purposes, below are two charts depicting quarterly Operating Margins and quarterly Sales Per Share for the Consumer Staples Sector of the S&P500, as depicted.  Each chart begins in the third (September) quarter of 2010 and extends through the first quarter of 2013.  The first quarter of 2013 data is estimated, as shown.

The underlying data is from Standard & Poor’s earnings estimates for the S&P500, from the update of June 13, 2013:

Companies in the Consumer Staples Sector include:

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StratX, LLC offers the above commentary for informational purposes only, and does not necessarily agree with the views expressed by outside parties.

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StratX, LLC (stratxllc.com) is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and offers corporations and businesses advice, strategies, and actionable methods on how to increase revenue and profitability.

For reference purposes, below are two charts depicting quarterly Operating Margins and quarterly Sales Per Share for the Consumer Discretionary Sector of the S&P500, as depicted.  Each chart begins in the third (September) quarter of 2010 and extends through the first quarter of 2013.  The first quarter of 2013 data is estimated, as shown.

The underlying data is from Standard & Poor’s earnings estimates for the S&P500, from the update of June 13, 2013:

Companies in the S&P500 Consumer Discretionary Sector include:

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StratX, LLC offers the above commentary for informational purposes only, and does not necessarily agree with the views expressed by outside parties.

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StratX, LLC (stratxllc.com) is a management consulting firm and strategic advisory that focuses on the analysis of current and future business conditions, and offers corporations and businesses advice, strategies, and actionable methods on how to increase revenue and profitability.